A form of debt or equity financing that possesses characteristics of both debt and equity financing is called

Question

Quizplus · Accepted Answer

A hybrid security combines elements of both debt and equity financing. Examples include convertible bonds, preferred stock, and mezzanine debt. These securities often provide investors with a fixed income stream, yet also have equity-like features, such as the ability to convert into shares of stock or participate in profits through dividends.

A Form of Debt or Equity Financing That Possesses Characteristics